CLUSTER ANALYSIS – AN INSTRUMENT FOR GROUPING THE PROCESSING INDUSTRY BRANCHES IN RESPECT OF THEIR FIELDS

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Author: Assistant Prof. PhD Kalin Krumov (Department “Marketing and strategic planning”, University of National and World Economy - Sofia)

Keywords: cluster analysis, differentiated policy in respect of the regions and branches JEL code: R580, C1

This paper presents one of the opportunities for implementing the cluster analysis in the area of regional surveys. Recently many countries have been researching the opportunities for implementing differentiated economic policy in respect of the regions and branches. This is the basis for more and more surveys in the area of regional development to be focused on the advantages and shortcomings when it comes to enforcing this policy. A prerequisite for developing the differentiated economic policy and for studying its advantages and shortcomings is the accurate snapshot of branches' status in respect of the individual regions and grouping them. This article presents a study of the way this prerequisite could be satisfied with the implementation of the cluster analysis. In it the cluster analysis is used as an instrument for grouping the branches of the processing industry in respect of the areas in Bulgaria. The classification is performed on the basis of the selected variables. The author intends to provide the analysis results in the capacity of instrument for improving the regional policy.